BILL NUMBER: AB 50	CHAPTERED  09/30/00

	CHAPTER   947
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 29, 2000
	PASSED THE ASSEMBLY   AUGUST 29, 2000
	PASSED THE SENATE   AUGUST 28, 2000
	AMENDED IN SENATE   AUGUST 25, 2000
	AMENDED IN SENATE   FEBRUARY 29, 2000
	AMENDED IN SENATE   JULY 8, 1999
	AMENDED IN SENATE   JUNE 21, 1999
	AMENDED IN ASSEMBLY   MAY 28, 1999
	AMENDED IN ASSEMBLY   APRIL 7, 1999
	AMENDED IN ASSEMBLY   MARCH 18, 1999

INTRODUCED BY   Assembly Member Migden

                        DECEMBER 7, 1998

   An act to amend Sections 20616, 20618, 21622, 21623, and 21623.5
of, and to add Section 21623.6 to, the Government Code, relating to
retirement.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 50, Migden.  Public Employees' Retirement System:
postretirement death benefits.
   The Public Employees' Retirement Law prescribes postretirement
death benefits with respect to state members in the amount of $2,000
and with respect to school members and specified local members in the
amount of $600 or, under certain conditions, in the amount of
$2,000, $3,000, $4,000, or $5,000.
   This bill would provide that the postretirement death benefit with
respect to school members who die on or after January 1, 2001, shall
be $2,000 or, under certain conditions, $3,000, $4,000, or $5,000,
and would make related technical changes.
   This bill would incorporate additional changes to Section 20618 of
the Government Code proposed by SB 528 to take effect if this bill
and that bill are enacted and become effective on or before January
1, 2001, and this bill is enacted last.
   This bill would also incorporate additional changes to Sections
21622, 21623, and 21623.5 of the Government Code proposed by SB 1998
to take effect if this bill and that bill are enacted and become
effective on or before January 1, 2001, and this bill is enacted
last.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 20616 of the Government Code is amended to
read:
   20616.  Sections 20469, 20470, 20502, 20512, 20570, 20571, and
20572 do not apply to contracts made pursuant to this chapter.  The
county superintendent of schools shall have no authority to exercise
any election under any provision of this part, other than Section
21623.6, that applies to  a contracting agency only on its election
to be subject to it.
  SEC. 2.  Section 20618 of the Government Code is amended to read:
   20618.  The assets and liabilities arising out of contracts with
school employers, as defined in Section 20063, shall be merged,
excluding that portion of a contract that provides benefits pursuant
to Section 21623.6, that portion of a contract with respect to local
police officers, as defined in Section 20430, and those contracts
with school districts or community college districts, as defined in
subdivision (i) of Section 20057, that employ school safety members,
as defined in Section 20444.  Employer accumulated contributions
credited to those entities on June 30, 1982, and all the
contributions paid by a school employer after June 30, 1982, shall be
held exclusively for the benefit of school members, retired school
members, and their beneficiaries.
   A person who is a member under a contract between the board and
school districts or community college districts prior to July 1,
1983, shall not be denied any right extended to him or her by reason
of that membership.
  SEC. 2.5.  Section 20618 of the Government Code is amended to read:

   20618.  (a) The assets and liabilities arising out of contracts
with school employers, as defined in Section 20063, shall be merged,
excluding that portion of a contract that provides benefits pursuant
to Section 21623.6, that portion of a contract with respect to local
police officers, as defined in Section 20430, and those contracts
with school districts or community college districts, as defined in
subdivision (i) of Section 20057, that employ school safety members,
as defined in Section 20444.  Employer accumulated contributions
credited to those entities on June 30, 1982, and all the
contributions paid by a school employer after June 30, 1982, shall be
held exclusively for the benefit of school members, retired school
members, and their beneficiaries.
   (b) Effective December 31, 1999, the assets and liabilities of the
Los Angeles Unified School District and the Los Angeles Community
College District held with respect to miscellaneous members and
retirees who have service credit with those school districts prior to
July 1, 1983, shall be merged with those assets and liabilities of
other school employers as provided in subdivision (a).  Any service
previously credited as local miscellaneous service with those
employers shall be considered service credit with a school employer.

   (c) A person who is a member under a contract between the board
and school districts or community college districts prior to July 1,
1983, shall not be denied any right extended to him or her by reason
of that membership.
  SEC. 3.  Section 21622 of the Government Code is amended to read:
   21622.  (a) In lieu of benefits provided by Section 21620, upon
the death of any person, after retirement and while receiving a
retirement allowance from this system, there shall be paid to his or
her estate, or to the beneficiary whom he or she shall nominate by
written designation duly executed and filed with the board, the sum
of six hundred dollars ($600), to be provided from contributions by
the employer.
   (b) For the purposes of this section, all contributions,
liabilities, actuarial interest rates, and other valuation factors
shall be determined on the basis of actuarial assumptions and methods
that, in the aggregate, are reasonable and that, in combination,
offer the actuary's best estimate of anticipated experience under
this system.
   (c) The additional employer contributions required under this
section shall be computed as a level percentage of member
compensation.  The additional contribution rate required at the time
this section is added to a contract shall not be less than the sum of
(1) the actuarial normal cost and, (2) the additional contribution
required to amortize the increase in accrued liability attributable
to benefits elected under this section over a period of not more than
30 years from the date this section becomes effective in the
contracting agency's contract.
   (d) This section shall not apply to any contracting agency, except
for those contracting agencies that are school employers and those
school districts or community college districts, as defined in
subdivision (i) of Section 20057, until the agency elects to be
subject to this section by amendment to its contract made in the
manner prescribed for approval of contracts, except an election among
the employees is not required, or, in the case of contracts made
after January 1, 1981, by express provision in the contract making
the contracting agency subject to this section.
  SEC. 3.5.  Section 21622 of the Government Code is amended to read:

   21622.  (a) In lieu of benefits provided by Section 21620, upon
the death of any person, after retirement and while receiving a
retirement allowance from this system, there shall be paid to the
beneficiary whom he or she shall nominate by written designation duly
executed and filed with the board, the sum of six hundred dollars
($600), to be provided from contributions by the employer.
   (b) For the purposes of this section, all contributions,
liabilities, actuarial interest rates, and other valuation factors
shall be determined on the basis of actuarial assumptions and methods
that, in the aggregate, are reasonable and that, in combination,
offer the actuary's best estimate of anticipated experience under
this system.
   (c) The additional employer contributions required under this
section shall be computed as a level percentage of member
compensation.  The additional contribution rate required at the time
this section is added to a contract shall not be less than the sum of
(1) the actuarial normal cost and, (2) the additional contribution
required to amortize the increase in accrued liability attributable
to benefits elected under this section over a period of not more than
30 years from the date this section becomes effective in the
contracting agency's contract.
   (d) This section shall not apply to any contracting agency, except
for those contracting agencies that are school employers and those
school districts or community college districts, as defined in
subdivision (i) of Section 20057, until the agency elects to be
subject to this section by amendment to its contract made in the
manner prescribed for approval of contracts, except an election among
the employees is not required, or, in the case of contracts made
after January 1, 1981, by express provision in the contract making
the contracting agency subject to this section.
  SEC. 4.  Section 21623 of the Government Code is amended to read:
   21623.  (a) In lieu of benefits provided by Section 21620 or
21622, upon the death of any retired state or school member, after
retirement and while receiving a retirement allowance from this
system, there shall be paid to his or her estate, or to the
beneficiary whom he or she shall nominate by written designation duly
executed and filed with the board, the sum of two thousand dollars
($2,000), to be provided from contributions by the employer.
   (b) For the purposes of this section, all contributions,
liabilities, actuarial interest rates, and other valuation factors
shall be determined on the basis of actuarial assumptions and methods
that, in the aggregate, are reasonable and that, in combination,
offer the actuary's best estimate of anticipated experience under
this system.
   (c) The additional employer contributions required under this
section shall be computed as a level percentage of member
compensation.
   (d) This section shall apply to a school employer and a retired
school member whose death after retirement occurs on or after January
1, 2001.  This section shall not apply to any contracting agency or
local member, except those contracting agencies that are school
employers and those school  districts or community college districts
as defined subdivision (i) of Section 20057.
  SEC. 4.5.  Section 21623 of the Government Code is amended to read:

   21623.  (a) In lieu of benefits provided by Section 21620 or
21622, upon the death of any retired state or school member, after
retirement and while receiving a retirement allowance from this
system, there shall be paid to the beneficiary whom he or she shall
nominate by written designation duly executed and filed with the
board, the sum of two thousand dollars ($2,000), to be provided from
contributions by the employer.
   (b) For the purposes of this section, all contributions,
liabilities, actuarial interest rates, and other valuation factors
shall be determined on the basis of actuarial assumptions and methods
  that, in the aggregate, are reasonable and  that, in combination,
offer the actuary's best estimate of anticipated experience under
this system.
   (c) The additional employer contributions required under this
section shall be computed as a level percentage of member
compensation.
   (d) This section shall apply to a school employer and a retired
school member whose death after retirement occurs on or after January
1, 2001.   This section shall not apply to any contracting agency or
local member, except those contracting agencies that are school
employers and those school districts or community college districts
as defined in subdivision (i) of Section 20057.
  SEC. 5.  Section 21623.5 of the Government Code is amended to read:

   21623.5.  (a) In lieu of benefits provided by Sections 21620 and
21622 upon the death of any local member, after retirement and while
receiving a retirement allowance from this system, there shall be
paid to his or her estate, or to the beneficiary whom he or she shall
nominate by written designation duly executed and filed with the
board, the sum of two thousand dollars ($2,000), three thousand
dollars ($3,000), four thousand dollars ($4,000), or five thousand
dollars ($5,000), whichever amount is designated by the employer in
its contract, to be provided from contributions by the employer.
   (b) For the purposes of this section, all contributions,
liabilities, actuarial interest rates, and other valuation factors
shall be determined on the basis of actuarial assumptions and methods
that, in the aggregate, are reasonable and that, in combination,
offer the actuary's best estimate of anticipated experience under the
system.
   (c) The additional employer contributions required under this
section shall be computed as a level percentage of member
compensation.
   (d) This section shall not apply to a contracting agency unless
and until the agency elects to be subject to this section by
amendment to its contract made in the manner prescribed for approval
of contracts, except an election among the employees is not required
or in the case of contracts made on or after January 1, 1999, except
by express provision in the contract making the contracting agency
subject to this section.
  SEC. 5.5.  Section 21623.5 of the Government Code is amended to
read:
   21623.5.  (a) In lieu of benefits provided by Sections 21620 and
21622, upon the death of any local member, after retirement and while
receiving a retirement allowance from this system, there shall be
paid to the beneficiary whom he or she shall nominate by written
designation duly executed and filed with the board, the sum of two
thousand dollars ($2,000), three thousand dollars ($3,000), four
thousand dollars ($4,000), or five thousand dollars ($5,000),
whichever amount is designated by the employer in its contract, to be
provided from contributions by the employer.
   (b) For the purposes of this section, all contributions,
liabilities, actuarial interest rates, and other valuation factors
shall be determined on the basis of actuarial assumptions and methods
that, in the aggregate, are reasonable and that, in combination,
offer the actuary's best estimate of anticipated experience under the
system.
   (c) The additional employer contributions required under this
section shall be computed as a level percentage of member
compensation.
   (d) This section shall not apply to a contracting agency unless
and until the agency elects to be subject to this section by
amendment to its contract made in the manner prescribed for approval
of contracts, except an election among the employees is not required
or in the case of contracts made on or after January 1, 1999, except
by express provision in the contract making the contracting agency
subject to this section.
  SEC. 6.  Section 21623.6 is added to the Government Code, to read:

   21623.6.  (a) In lieu of benefits provided by Sections 21620,
21622, and 21623, upon the death of any school member, after
retirement and while receiving a retirement allowance from this
system, there shall be paid to the beneficiary whom he or she shall
nominate by written designation duly executed and filed with the
board, the sum of three thousand dollars ($3,000), four thousand
dollars ($4,000), or five thousand dollars ($5,000), whichever amount
is designated by the employer in its contract, to be provided from
contributions by the employer.
   (b) For the purposes of this section, all contributions,
liabilities, actuarial interest rates, and other valuation factors
shall be determined on the basis of actuarial assumptions and methods
that, in the aggregate, are reasonable and that, in combination,
offer the actuary's best estimate of anticipated experience under the
system.
   (c) The additional employer contributions required under this
section shall be computed as a level percentage of member
compensation.
   (d) This section shall not apply to a school employer unless and
until it elects to be subject to this section by amendment to its
contract made in the manner prescribed for approval of contracts or,
in the case of contracts made on or after January 1, 2001, except by
express provision in the contract making the school employer subject
to this section.
  SEC. 7.  Section 2.5 of this bill incorporates amendments to
Section 20618 of the Government Code proposed by both this bill and
SB 528.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2001, (2) each bill
amends Section 20618 of the Government Code, and (3) this bill is
enacted after SB 528, in which case Section 20618 of the Government
Code, as amended by SB 528, shall remain operative only until the
operative date of this bill, at which time Section 2.5 of this bill
shall become operative, and Section 2 of this bill shall not become
operative.
  SEC. 8.  Section 3.5 of this bill incorporates amendments to
Section 21622 of the Government Code proposed by both this bill and
SB 1998.  It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2001, (2) each
bill amends Section 21622 of the Government Code, and (3) this bill
is enacted after SB 1998, in which case Section 3 of this bill shall
not become operative.
  SEC. 9.  Section 4.5 of this bill incorporates amendments to
Section 21623 of the Government Code proposed by both this bill and
SB 1998.  It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2001, (2) each
bill amends Section 21623 of the Government Code, (3) AB 1829 is not
enacted or as enacted does not amend that section, and (4) this bill
is enacted after SB 1998, in which case Section 4 of this bill shall
not become operative.
  SEC. 10.  Section 5.5 of this bill incorporates amendments to
Section 21623.5 of the Government Code proposed by both this bill and
SB 1998.  It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2001, (2) each
bill amends Section 21623.5 of the Government Code, and (3) this bill
is enacted after SB 1998, in which case Section 5 of this bill shall
not become operative.
